What Can $700k Buy You in Newcastle?
- intouch Magazine
- Aug 1, 2022
- 2 min read
Month In Review is a monthly, themed, location-by-location study of Australia’s real estate markets by local, independent property valuers Herron Todd White. Lovers of all things property find it an interesting read – and in this market of exploding prices (and interest rates) – it’s almost an anything-goes concept!
In July, the team focused on a fictional buyer with a “lazy $700K” to spend and looked at what that might buy you across the country, including in Newcastle, and as it turns out – not much!
Local Herron Todd White Property Valuer Darren Sims says that as the market improves and values increase, it is surprisingly difficult to buy a property in Newcastle city for $700,000.
“As property prices rise, so does the entry-level value of homes. Generally speaking, the city has bypassed the $700,000 purchaser,” said Darren.
“The unit market has risen sharply, with one-bedroom units being affordable in this budget; however, only a select range of two-bedroom units are now affordable. Fringe city suburbs are likewise out of reach for the house buyer, so outlying suburbs such as Maryland, Birmingham Gardens, Mount Hutton and Windale are the places to go. Further afield, Thornton, East Maitland and Cliftleigh are just within the price range, but the supply is limited,” he said.
“The city and lake locations have always been a good investment, but with $700,000 to spend, this would generally mean a townhouse or a house which requires maintenance or cosmetic works. Larger traditional homes are now out of that price range, and patience and energy will be required to find the right property.”
Darren says that In the current market, house prices have been rising rapidly, and the $700,000 purchaser is being priced out of the market except for areas out of the city fringes.
“Looking ahead, with interest rates rising, this may start to slow price increases in the short term; however, with the lack of supply, it’s likely the entry-level price range will need to be increased above $700,000 in the medium term.”
